Tag: biologics business

CLSA bearish on Biocon, here’s why

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Biocon has slipped in trade post CLSA’s sell call on the stock, at a target price of Rs 260.

A couple of takeaways from the annual report is that the cash flow remained negative for the eighth consecutive year in FY21, as per CLSA.

The operating cash flow fell 24 percent year-on-year and capex intensity remained high. It is around Rs 2,200 crore of FY22 capex guidance, which suggests that the capex intensity will remain high, going forward.

A slump in the margins in the biologics business has hurt overall profitability, as per CLSA.

FY21 report lacks any mention of listing plans for the biologics business as well.

Watch the accompanying video of CNBC-TV18’s Ekta Batra for more details.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Biocon’s biologics business is at an inflection point, says CMD Kiran Mazumdar Shaw

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Biocon is in focus following reports that PE firms Temasek, True North and Canadian Pension Fund are looking to invest in the company’s biologics business. Kiran Mazumdar Shaw, CMD of Biocon, spoke to CNBC-TV18 about the development.

“I would say that as a need to grow this business, we are always looking at investments prior to our publicly stated plan to take the company public. So from that point of view, we would be looking at some pre-listing investment. As far as the entity is concerned, I don’t think I want to make any statement,” Shaw said on Thursday.

“Our biologics business is at an inflection point. It is at a high growth trajectory. We have made huge capital investments in expanding our capacities both in India and Malaysia and I think this is the time when we need to make sure that we address all the addressable market opportunities that are opening up for us,” she added.

“We have received EU certification of good manufacturing practice (GMP) (EU GMP) approval of our Malaysian facility, which includes an added expanded device facility in Malaysia which expands our capacity to address these opportunities for insulin Glargine even more aggressively. So I think that is what we are looking at,” said Shaw.

“We are looking at expanding our pipelines. So research and development (R&D) is a need, capex is a need and that is the way we are going to be able to utilise funds both from investors and from public listing,” she further mentioned.

“We are betting big on Trastuzumab. It is going to be launched hopefully by the end of the year and I think this augurs very well for both Biocon and Mylan because this is the big opportunity for both companies and Mylan is going to be pursuing this opportunity in the US very aggressively. As far as Europe is concerned, we have already entered key markets in Europe with Trastuzumab and the opportunity now is a much bigger opportunity in the US. So we are all getting prepared for that launch,” Shaw said.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Biocon says growth momentum to continue in Q2, Trastuzumab launch in focus

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Biocon has kicked off the fiscal year 2019-20 on a strong note with solid earnings in the first quarter ended June 30 supported by improved margins in biologics and a strong uptick biosimilars across markets, said Kiran Mazumdar Shaw, chairperson and managing director.

“This has been a very strong start to FY20 especially where biologics are concerned and a large part of very strong earnings that we saw on account of biologics including the very sharp improvement in margins to 38 percent came from the profit share contribution from fulfiller,” she said.

“We expect to continue with this growth momentum in Q2 and we expect an even stronger second half once we launch trastuzumab. That is what is driving the biologics business going forward,” she added.

Speaking about cost structure, Shaw said, “We are very focused on cost containment but what is also helping us to contain and maintain these good rich margin levels is the fact that we are now getting a large profit contribution coming in from our partner Mylan, both for Europe and US and other market businesses which are helping us to keep these margins steady because profit share goes straight away to contributing to margin improvement.”

On concerns raised over Amgen and Allergan launching trastuzumab biosimilar in the US market, she replied, “It was certainly unanticipated but it doesn’t change our expectations from the launch of a biosimilar trastuzumab, we are very well positioned because Amgen is launching with a 420 milligram (mg) presentation, which doesn’t exist today in the US market.”

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow